TOKAI Corp. (9729) Stock Price

Market cap
¥97.6B
P/E ratio
15.2x
Provides healthcare support services including medical linen rental, pharmacy operations, and environmental cleaning across Japan through multiple subsidiaries.

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Business Overview

Since its founding in 1955, Tokai has pursued various business operations aimed at promoting people's health and well-being, and creating comfortable and hygienic spaces. As of March 31, 2025, Tokai operates through 27 subsidiaries and 2 affiliated companies, primarily across three business segments: "Health and Lifestyle Services," "Pharmacy Services," and "Environmental Services."

The "Health and Lifestyle Services" segment operates businesses supporting healthcare and nursing care facilities, as well as independent living for elderly people. Specific offerings include rental of bedding and linens for medical institutions and care facilities, rental and sales of care products, operation of the rehabilitation-focused day service facility "Mick Kenko no Mori," meal services, development and manufacturing of cleaning equipment, and delivery water service "Aqua Clara."

The "Pharmacy Services" segment supports regional health by operating "Tanpopo Pharmacy" locations primarily in front of major hospitals in the Tokai, Hokuriku, Kansai, and Shikoku regions. Additionally, in the Kansai region, the company operates the drugstore chain "Drug Mick," providing health support to local residents.

The "Environmental Services" segment operates businesses supporting clean living and space creation. This includes rental and sales of environmental sanitation products such as mats and mops under the "Reeskin" brand, cleaning and management services primarily for medical institutions and care facilities, and electricity sales business utilizing solar power.

As other operations, Nihon Information Mart Inc. provides business management information. Through these diverse business operations, Tokai aims to be a company that contributes to society.

Management Policy

Tokai has been working to reduce waste through its rental business since its founding in 1955, aiming to realize a sustainable society. The company seeks to contribute to solving social issues across four fields: healthcare, elderly care, independent living for seniors, and community health and daily hygiene.

In 2024, the company reorganized its "Purpose, Mission, and Vision" and established the long-term vision "Vision 2035." Through this, Tokai aims to contribute to the realization of a healthy longevity society as an infrastructure company supporting clean and healthy living.

The medium-term management plan positions the three-year period from 2026 to 2028 as a phase of "sowing seeds for improved profitability and new value creation." The basic policies include maximizing profit, developing new businesses, creating group synergies, investing in human capital, and balancing growth investment with shareholder returns.

Specifically, the company aims for sustained profit growth through business structure reforms in each division and development of new businesses. In anticipation of growing demand in the home care and preventive health sectors, Tokai is establishing out-of-pocket services. This will maximize value across the Tokai Group.

Additionally, the company will strengthen investment in human capital, develop talent to drive growth, and review systems to enhance employee engagement. Through these efforts, Tokai will promote sustained corporate growth and actively pursue growth investment and shareholder returns to improve capital efficiency.

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